Taco Cabana facts for kids

Taco Cabana is a popular American fast casual restaurant chain. It serves delicious Tex-Mex food. The company is based in San Antonio, Texas. Taco Cabana is known for its bright "pink" buildings. It also has cool outdoor dining areas. Many of their menu items are made fresh every day right in the restaurant. You can even see them cooking in open areas!

The Story of Taco Cabana

How Taco Cabana Started

Taco Cabana was started by Felix Stehling in September 1978. The very first restaurant opened in San Antonio. Felix bought an old Dairy Queen building. He needed more parking for his bar across the street. So, he decided to open a taco stand instead.

The building already had an open-air design. This gave him the idea for the "patio cafe" style. This style became famous for all Taco Cabana restaurants. Felix's wife, Billie Jo Stehling, designed the inside look. After the first night, all the outdoor furniture was stolen! So, Felix decided to keep the restaurant open 24 hours a day.

The restaurant focused on making fresh food. They did not use pre-made or pre-packaged items. They also served special drinks and stayed open all day and night. Customers could also get takeout orders. As the business grew, Felix asked his two brothers for help. They expanded the chain to nine restaurants in San Antonio. In 1986, his brothers left the company. They had different ideas about how to run the business.

In 1990, Taco Cabana started to grow outside of Texas. It also continued to expand across Texas. Richard Cervera became the company president in 1990. He helped the brand start offering franchises.

Legal Battles and Growth

In the late 1980s, Taco Cabana became very successful. This led other companies, like Two Pesos, to copy its style. In 1987, Taco Cabana sued Two Pesos. They said Two Pesos copied their brand look. Two Pesos lost the case. They tried to appeal, but in 1992, the Supreme Court agreed with Taco Cabana. Taco Cabana was awarded $3.7 million.

In 1992, Taco Cabana became a public company. This meant people could buy shares of its stock. By the end of that year, they had 17 restaurants. In 1993, Taco Cabana bought Two Pesos' restaurants. This deal was worth about $22 million. Taco Cabana turned most Two Pesos locations into their own restaurants. Some were closed, and a hamburger chain they owned was sold.

Taco Cabana's sales reached $127 million in 1994. That year, Felix Stehling stepped down as chairman. Richard Cervera took his place. Even with more money coming in, the company's stock price dropped. Cervera resigned in 1995. Stephen Clark then became the new leader.

Changes and New Owners

In 1995, Stephen Clark became the Chief Operating Officer and president. He looked closely at how Taco Cabana was run. He closed some company-owned restaurants. He also helped franchisees with their debts. He sold parts of the company not related to restaurants. He also slowed down how fast they were opening new places.

In 1996, Taco Cabana introduced a new restaurant style. It looked like an old Mexican cafe. It had a rounded front and clay tile roofs. It also featured old wood panels and shiny stainless steel counters. More customers visited, and profits went up. They planned to use this new design for future restaurants.

By 2000, Taco Cabana spent about $30 million to improve its image. Profits grew, but the stock price stayed low. Clark started looking for options to sell the company. In 2001, Carrols Restaurant Group bought Taco Cabana. It became a private company. After the sale, Clark left. Mike Biviano took over as president.

In 2001, Taco Cabana started its "Mexican grill" idea. This included grilled beef, chicken, pork, and shrimp made to order. In 2002, they closed seven stores in Arizona. But Taco Cabana was still making money. In 2003, they began designing a new restaurant. It featured a large eight-foot char-grill. That year, Taco Cabana opened nine new restaurants. In 2004, they promoted their fresh food and San Antonio history. From 2004 to 2005, they added five more restaurants. By 2005, the company had 120 restaurants.

Fiesta Restaurant Group Takes Over

In 2012, Carrols created a new public company. It was called Fiesta Restaurant Group, Inc. This new company owned Taco Cabana and its sister brand, Pollo Tropical. As of October 2012, Taco Cabana had 160 restaurants. In December 2012, Fiesta announced they would move their main office. They planned to grow a lot in the next two years. Later that year, the founder, Felix Stehling, passed away at 87.

In January 2016, Fiesta owned 162 Taco Cabana restaurants. Six others were run by franchisees. In February 2016, they planned to open up to 10 new Taco Cabana restaurants in Texas. By July 2017, there were 176 Taco Cabana stores. On January 14, 2020, Fiesta Restaurant Group announced they would close 19 Taco Cabana stores in Texas. They said this was to "eliminate all stores with significant losses."

Restaurant Makeovers

A Taco Cabana location in Dallas, Texas.

In 2012, Taco Cabana started updating its restaurants. The new design featured cool metal "estrella" (star) lights. These hung from the ceiling. There were also colorful papel picado decorations. Large photos of Mexican street life decorated the walls.

New Owners: Yadav Enterprises

In August 2021, Yadav Enterprises, Inc. bought Taco Cabana. They bought it from Fiesta Restaurant Group, Inc. The deal was reportedly worth $85 million. Fiesta said they sold Taco Cabana to focus on their Pollo Tropical brand.

What's on the Menu?

In 2002, Taco Cabana added flautas to its menu for a short time. They were so popular that they became a permanent item! In 2003, they introduced the "premium bowl." This was an early version of their salads and bowls. In April 2004, Taco Cabana started selling the Dozen Breakfast Tacos Box. This was also very popular and became a regular item.

From 2006 to 2010, they tested new foods. These included Shrimp Tampico and grilled pupusa. Since then, Taco Cabana has added many temporary items. Some of these have become permanent. For example, steak street tacos were added in December 2010. Brisket tacos came in April 2011. Sopapillas and flan were added in June 2011. Shrimp dishes were introduced in February 2013.

In 2012, the company's chefs were trying out street food ideas. In 2015, Taco Cabana launched an online mobile ordering app. In January 2018, they started offering some breakfast foods all day. The chain still offers a variety of special drinks. This includes their popular $2 margaritas. In March 2018, they brought back Texas smokehouse brisket. They still have taco boxes with a dozen tacos of different kinds. All breakfast tacos are available in the mornings. Several breakfast tacos are also available all day. They even sell some of their hot sauces.

In March 2020, all restaurants stopped in-store dining. They switched to take-away service because of the COVID-19 pandemic. By June, some allowed outdoor dining. By early 2021, all Taco Cabana dining rooms and patios were open again.

Special Programs

Taco Cabana has its own app. Guests can use it to find locations. They can also order online for delivery or pick-up. This includes their popular margaritas and other drinks. Taco Cabana also has a rewards program called MYTC. Members can get special offers and news. They can also earn points for future food purchases.

Helping the Community

Taco Cabana helps many local military groups in Texas. They offer a daily 20% discount for military members. This discount is for in-restaurant and drive-thru orders. (It does not include gift card purchases.)

Over the years, Taco Cabana has supported many fundraisers and charities. These include:

• The Warrior and Family Support Center (WFSC) at the Brooke Army Medical Center
• The Boys and Girls Clubs of Texas
• The National Kidney Foundation
• Susan G Komen
• Eva's Heroes
• In 2021, they held a Halloween Treats For A Cause fundraiser for local food banks.

Since 2010, Taco Cabana has hosted Taco Treat fundraisers for the WFSC.

Besides the military discount, Taco Cabana also offers a daily 20% discount. This is for senior citizens and students with valid IDs.

More to Explore

• Two Pesos, Inc. v. Taco Cabana, Inc.
• Two Pesos
• List of Texas companies (T)
• List of Mexican restaurants